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DECREE No. 122/2003/ND-CP OF OCTOBER 22, 2003 ON THE SETTING UP OF THE NATIONAL FOUNDATION FOR SCIENCE AND TECHNOLOGY DEVELOPMENT

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the June 9, 2000 Science and Technology Law;

At the proposal of the Minister of Science and Technology,

DECREES:

Article 1.- To set up the National Foundation for Science and Technology Development under the provisions in Article 39 of the Science and Technology Law.

Article 2.- To promulgate together with this Decree the Charter on Organization and Operation of the National Foundation for Science and Technology Development.

Article 3.- This Decree takes effect 15 days after its publication in the Official Gazette.

The ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the presidents of the People's Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government

Prime Minister
PHAN VAN KHAI

CHARTER ON ORGANIZATION AND OPERATION OF THE NATIONAL FOUNDATION FOR SCIENCE AND TECHNOLOGY DEVELOPMENT

(Promulgated together with the Government's Decree No. 122/2003/ND-CP of October 22, 2003)

Chapter I

GENERAL PROVISIONS

Article 1.- Functions of the National Foundation for Science and Technology Development

The National Foundation for Science and Technology Development (hereinafter referred to as the Fund for short) operates for non-profit purposes, has the function of financing and lending capital for the performance of scientific and technological tasks proposed by organizations or individuals.

The Fund's international transaction name is the National Foundation for Science and Technology Development, abbreviated to NAFOSTED.

Article 2.- The Fund's legal status

The Fund is attached to the Ministry of Science and Technology, has the legal person status, its own seal, and is allowed to open accounts at the State treasury and banks inside and outside the country. The Fund has its head office in Hanoi city, and representative offices in Ho Chi Minh city and a number of other localities.

Article 3.- Subjects to be financed or lent capital by the Fund

1. Basic researches, unexpected or newly arising science and technology tasks of important scientific and practical significance, prospective but risky scientific and technological tasks;

2. Trial production projects; scientific and technological tasks in line with the State's priority scientific and technological directions, which are performed by enterprises;

3. Projects on the application or transfer of scientific and technological research results in order to raise the competitiveness of products and the efficiency of socio-economic activities.

Article 4.- Conditions for being financed or lent capital

1. Organizations and individuals proposing scientific and technological tasks must have adequate professional qualifications and material-technical bases suitable to each type of scientific and technological tasks.

2. Organizations and individuals that borrow capital of the Fund to carry out the projects on the application or transfer of scientific and technological research results must comply with relevant law provisions.

Article 5.- Principles for the Fund's financing and lending

1. The scientific and technological tasks proposed by organizations or individuals to be financed or lent capital by the Fund shall be considered and selected in a public, democratic and fair manner through the Science and Technology Council set up by the Fund.

2. The research contents of the scientific and technological tasks financed by the Fund must not be identical to the researches which have been or are being carried out with the Fund's capital sources or other capital sources of the State.

3. The Fund shall finance, or lend capital for, the performance of scientific and technological tasks not belonging to the scientific and technological programs, schemes or projects included in the State's plans, which are of national, multi-branch or regional significance and proposed by organizations and individuals of all economic sectors.

Chapter II

TASKS, POWERS, ORGANIZATIONAL AND OPERATIONAL APPARATUS OF THE FUND

Article 6.- Tasks and powers of the Fund

1. To receive capital from the State's sources; to mobilize voluntary contributions from organizations and individuals inside and outside the country so as to finance, and lend capital for, the performance of scientific and technological tasks; manage and use for the right purposes and with efficiency its capital sources.

2. To publicly announce its priority directions, contents, requirements and specific procedures so that all organizations and individuals can propose appropriate scientific and technological tasks to be financed or lent capital by the Fund.

3. To organize the consideration and selection of scientific and technological tasks to be financed or lent capital by the Fund.

4. To examine and evaluate the professional and financial contents of the scientific and technological tasks financed or lent capital by the Fund.

5. To organize the evaluation and pre-acceptance tests of the results of the performance of the scientific and technological tasks financed or lent capital by the Fund.

6. To stop financing or lending capital, or recover the financed or lent amounts when detecting that the organizations or individuals performing the scientific and technological tasks violate the regulations on the use of the Fund's capital.

7. To settle complaints or sue organizations or individuals that violate their contracts and commitments with the Fund according to law provisions.

8. To manage and use the State-allocated capital and assets and other resources according to its Charter on Organization and Operation and law provisions.

9. To manage its organization and personnel according to law provisions.

10. To promulgate an Operation Regulation and other regulations in service of its operation.

11. To cooperate with foreign organizations and individuals as well as international organizations on matters related to its operation.

Article 7.- Managerial and executive apparatus of the Fund

The managerial and executive apparatus of the Fund consists of the Fund's Management Council, the Fund's Executive Agency and the Fund's Control Board.

Article 8.- The Fund's Management Council

1. The Fund's Management Council consists of 9 members being scientists and managers who work on a part-time basis for every 5-year term. The president, vice president and members are appointed and dismissed by the Minister of Science and Technology at the proposals of the scientific and technological organizations and management agencies.

2. Tasks and powers and the Fund's Management Council:

a/ To decide on the operation orientations and plans of the Fund on the basis of the State's priority directions for science and technology development, the Fund's financing and lending modes;

b/ To approve the Fund's annual financial plans and settlement reports submitted by the Fund's director;

c/ To set up the Science and Technology Council and other advisory councils to give advice on the consideration and selection of scientific and technological tasks, evaluate and pre-acceptance test the results of the performance of scientific and technological tasks and other related matters;

d/ To approve the operation plans and reports of the Fund's Control Board;

e/ To supervise and examine the operation of the Fund's Executive Agency and the Fund's Control Board in the implementation of the State's regulations, the Fund's Organization and Operation Charter and decisions of the Fund's Management Council;

f/ To promulgate other necessary regulations of the Fund according to its competence.

3. The working regime of the Fund's Management Council:

a/ The Fund's Management Council meets once every three months to consider and decide on matters falling under its tasks and powers; meet extraordinarily to settle urgent matters at the proposal of its president or the Fund's director or of at least two thirds of the total number of its members;

b/ The meetings of the Fund's Management Council must be attended by at least two thirds of its members and chaired by the president or the vice president who is authorized by the president. The Fund's Management Council shall decide on matters by majority of the total number of its members. The contents and decisions of the meetings of the Fund's Management Council must be recorded in minutes which are sent to all members of the Fund's Management Council.

4. The members of the Fund's Management Council are tasked to fully participate in all activities according to the regulation of the Fund's Management Council; enjoy remuneration and other benefits according to the State's regulations.

5. The Fund's Management Council uses the apparatus of the Fund's Executive Agency and the Fund's seal in performing its tasks and exercising its powers according to the Charter. The operation funding of the Fund's Management Council is included in the Fund's operation expenditures.

Article 9.- The Fund's Executive Agency

The Fund's Executive Agency is composed of the Fund's director, deputy directors, professional units and representative offices.

1. The Fund's director is the legal person's representative of the Fund, who is appointed and dismissed under decisions of the Minister of Science and Technology at the proposal of the Fund's Management Council. The Fund's director has the following tasks and powers:

a/ To organize, administer and manage activities of the Fund's Executive Agency according to the provisions of the Fund's Charter and decisions of the Fund's Management Council;

b/ To manage personnel, assets and capital of the Fund;

c/ To decide to appoint and dismiss heads and deputy heads of the professional units or representative offices of the Fund;

d/ To participate in the meetings of the Fund's Management Council, to present opinions but not to vote on the issues discussed by the Fund's Management Council.

2. The Fund's deputy directors are nominated by the Fund's director and appointed and dismissed under decisions of the Minister of Science and Technology. The Fund's deputy directors assist the Fund's director in performing the tasks as assigned.

3. The professional units and representative offices of the Fund are unanimously proposed by the Fund's Management Council and director and decided by the Minister of Science and Technology.

Article 10.- The Fund's Control Board

1. The Fund's Control Board is composed of between 3 and 5 members, including the head, the deputy head and members who are appointed and dismissed by the Fund's Management Council. Members of the Fund's Control Management must not be spouses, parents, children nor siblings of the members of the Fund's Management Council, the Fund's director or deputy directors. They must be knowledgeable about finance, accounting, banking and laws, and work on a part-time basis for every five-year term.

2. The Fund's Control Board has the following tasks and powers:

a/ To examine, and report to the Fund's Management Council on, the implementation of the Fund's Charter and decisions of the Fund's Management Council;

b/ To operate independently according to the program adopted by the Fund's Management Council;

c/ To consider and submit to competent authorities for settlement complaints of organizations and individuals, which are related to the Fund's operation;

3. The head or authorized members of the Fund's Control Board participate in the meetings of the Fund's Management Board, present opinions but not to vote on the issues discussed by the Fund's Management Council.

4. The Control Board's operation funding is included in the Fund's operation expenses.

Article 11.- The Science and Technology Council

1. The Science and Technology Council is set up under decision of the Fund's Management Council at the proposal of the Fund's director in order to give advice on the consideration and selection of scientific and technological tasks; to evaluate and pre-acceptance test the results of the performance of scientific and technological tasks. Members of the Science and Technology Council are nominated by the Fund's director and decided by the president of the Fund's Management Council.

2. The Science and Technology Council operates under a Regulation proposed by the Fund's Management Council and decided by the Minister of Science and Technology.

Chapter III

CAPITAL SOURCES AND CAPITAL USE

Article 12.- The Fund's operational capital sources

1. The Fund is allocated VND 200 billion from the non-business science budget as its initial capital in the first year of its establishment. Annually, the Fund shall receive additional allocations to ensure its budget-allocated operational capital of at least VND 200 billion.

2. The Fund may mobilize the following non-budget capital sources:

a/ Voluntary contributions and donations of domestic organizations and individuals, international organizations as well as foreign organizations and individuals;

b/ Interests on capital lent to the projects on the application of the results of scientific research and technological development.

3. Other sources.

Article 13.- The Fund's financial support modes

1. Provision of partial or full non-refundable financial supports for the performance of scientific and technological tasks proposed by organizations and individuals, including:

a/ Basic researches in the scientific domains;

b/ Unexpected or newly arising scientific and technological tasks of important scientific and practical significance, prospective but risky scientific and technological tasks;

c/ Publication of scientific and technological works.

2. Provision of financial supports with between 60% and 100% of which to be recovered for trial production projects not included in the State's science and technology development plans.

3. Provision of non-recoverable financial supports for no more than 30% of the funding for enterprises to perform scientific and technological tasks in line with the State's priority scientific and technological directions.

4. Lending of interest-free capital to the projects on the application of research and development results created in the country.

5. Lending of capital at low interest rates to the technology renewal projects, with importance attached to high technology, clean technology and technology to create highly competitive products.

6. The capital reserved for the lending prescribed in Clauses 4 and 5 of this Article shall not exceed 20% of the capital allocated from the State budget to the Fund.

Article 14.- Consideration, selection and evaluation of subjects and projects

1. Within 30 days after the Fund's plans are approved by competent bodies, the Fund shall publicly announce its priority orientations, domains and regulations on financing and lending.

2. Organizations and individuals engaged in scientific and technological activities and Vietnamese enterprises that wish to be financed or lent capital must submit applications for financing or capital-lending according to the Fund's regulations.

3. The Science and Technology Council shall evaluate, consider and select scientific and technological tasks to be financed or lent capital by the Fund.

4. The Fund's financing, and lending capital for, scientific and technological tasks shall be effected under science and technology contracts.

5. The mid-term review, the evaluation and pre-acceptance test of scientific and technological tasks shall be performed under the signed science and technology contracts.

6. The funding for the Science and Technology Council is included in the Fund's management expenditures.

7. The Fund's Management Council shall promulgate the Regulation on consideration and selection of scientific and technological tasks on the following principles:

a/ The selected scientific and technological tasks must comply with the provisions in Article 3 of this Charter;

b/ The research outlines must satisfy scientific criteria and be feasible;

c/ The proposers of scientific and technological tasks must be fully qualified and capable of performing the tasks.

Article 15.- Responsibilities of organizations and individuals using the Fund's funding

1. To use the funding for the right purposes stated in the cost estimates already approved by the Fund.

2. To fulfil all commitments with the Fund and comply with the regimes prescribed by the Fund.

3. The results of the performance of scientific and technological tasks must be publicized according to the Fund's regulations.

Article 16.- Financial and accounting regimes

1. The Fund applies the accounting regime according to the law provisions on accounting.

2. Annually, the Fund shall draw up the estimates of its revenues and expenditures and submit them to the Minister of Science and Technology for consideration and approval.

3. Annually, the Fund shall make financial settlements and submit them to the Minister of Science and Technology for consideration and examination according to regulations.

4. The Fund is permitted to transfer the balance of a fiscal year to the subsequent year.

5. The Fund's management funding shall be used for the operation of the Fund's managerial and executive apparatus according to the State's current regulations.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 17.- Implementation provisions

The revision and supplementation of this Charter is submitted by the Minister of Science and Technology to the Prime Minister for decision.-

On behalf of the Government

Prime Minister
PHAN VAN KHAI